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The Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) has called for a review of wage structures and the introduction of tax and cost-of-living relief measures for low and middle-income earners.
ZUFIAW General Secretary, Kasapo Kabende, said such deliberate and inclusive interventions would help ensure that ongoing economic gains translate into tangible benefits for ordinary citizens.
Speaking at a media briefing in Lusaka on Wednesday, Kabende said the union was encouraged by recent improvements in key economic indicators recorded at the start of the third quarter of 2025.
However, he noted that while the indicators signal optimism, the lived experiences of most Zambians—especially workers—had not improved in tandem with these gains, largely due to stalled wage negotiations and delayed guidance from the Emoluments Commission.
“This is due to delayed issuance—and in some cases, the absence—of cost-reflective parameters from the Emoluments Commission,” Kabende said.
He further observed that the cost of living remained excessively high, with essential goods and services—such as food, healthcare, and transportation—remaining out of reach for many households.
This, he said, persisted despite a marginal decline in the Basic Needs and Nutrition Basket, which fell from K11,763.38 in June to K11,602.37 in July 2025, according to the Jesuit Centre for Theological Reflection (JCTR).
“Wage levels in both the public and private sectors have not kept pace with inflationary pressures experienced in recent years—effects of which continue to impact workers today,” Kabende said.
He emphasised that the appreciation of the Kwacha against major currencies must translate into improved livelihoods for workers and a more inclusive economy.
Kabende added that the government should implement mechanisms to maintain a stable exchange rate and sustain inflation within the target range of 6–8 percent.
“As a union representing workers across the financial, pensions, and insurance sectors, we welcome the strengthening of the Zambian Kwacha, the reduction in fuel prices, and the steady decline in annual inflation,” he said.
He commended the government for its efforts to stabilise the economy, citing projections by the International Monetary Fund (IMF) that Zambia’s GDP will grow from 4.0 percent in 2024 to 5.8 percent in 2025.
Kabende expressed optimism that continued economic gains would enhance investor confidence, restore macroeconomic stability, and offer renewed hope to citizens that Zambia was on the path to sustainable recovery.
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